Performance and business highlights
• Like-for-like rental growth of 3.6% notwithstanding the significantly reduced inflation and therefore rental
indexation compared to 2023.
• During Q1 2024 retail sales and footfall were respectively 3.7% and 2.9% higher than for the same
period last year.
• Rent uplifts from renewals and relettings, on top of indexed passing rent, were 2.3% higher for the 12
months to 31 March 2024 during which period 244 lease transactions were signed. 84 of these
transactions were new lettings with an average uplift of 6.1%.
• EPRA vacancy rate at 31 March 2024 remained around its historically low level of 1.8%, same as a
year ago.
• Occupancy cost ratio (OCR) was 9.6% at 31 March 2024.
• Rent collection rate for Q1 2024 at 98% (97% in Q1 2023).
• Important merchandising projects underway at Woluwe with Zara having successfully opened their new
store on 17 April and with Carrefour Market who opened on 3 May, to be followed during 2024 by C&A
and INNO department store.
• Loan to value ratio (on the basis of proportional consolidation) at 42.8% at 31 March 2024.
• All long-term loans maturing in 2024 for a total amount of €170 million have been extended for three
(€9 million) or five years (€161 million).
• Direct investment result €0.62 per share for the quarter ending 31 March 2024 compared to €0.61
per share for the same period last year.
• Proposed total dividend of €1.70 per share for the year 2023. An interim cash dividend of €0.64 per
share was paid in January 2024. A final cash dividend of €1.06 per share will be payable on 5 July
2024, subject to AGM approval. Shareholders will also be offered the opportunity to opt for a stock
dividend instead of the final cash dividend.
• Direct investment result guidance for the full year 2024 confirmed between €2.30 and €2.40 per
share.
2
Board of Management’s commentary
Retail operations across our 24 shopping centres saw a continuation of the growth in retail sales that we
reported during 2023. Overall, retail sales growth during Q1 2024 was 3.7% compared to Q1 2023. All our
four markets and most retail sectors continued to show positive sales growth, with the outstanding
performers being books & toys (10.5%), health & beauty (9.5%), F&B (7.6%), and sport (7.3%). The
important fashion and shoe sector also reported positive growth (1.8%). Overall, footfall across the portfolio
increased by 2.9% in Q1 2024.
Rental growth for the 3 months to 31 March 2024 was 3.6%, due mainly to rental indexation. 98% of rents
have been collected to date for Q1 2024, indicating that there has been a full pass through of indexation
to our tenants who are generally trading well from an affordable rental base and a low OCR, which still
averages only 9.6%. Our leasing teams continued to report steady leasing momentum, negotiating 244
lease renewals and relettings during the 12-month period ended 31 March 2024. These lease transactions
achieved an overall rental uplift of 2.3% on top of rental indexation. 84 of these transactions were lease
contracts signed with new retailers producing a much higher rental uplift of 6.1%, demonstrating strong
demand from retailers wanting to establish in our shopping centres. Strong tenant demand and letting
activity have also kept our overall vacancy level down at only 1.8%.
The first important remerchandising improvements were completed at Woluwe Shopping during Q1 2024
with the successful spring opening of the new enlarged Zara store (3,300m²). Carrefour Market replacing
the Match supermarket opened on 3 May, to be followed later in the year by the latest C&A concept and
the fully refurbished INNO department store.
The Company had some preliminary discussions on taking an interest in Westland Shopping which have
terminated.
The Company has already secured the refinancing of all its long-term loans maturing in 2024. In February
2024, a new loan of €17.5 million (€8.8 million group share) was signed with Banco BPM to refinance the
previous loan on the retail park at Fiordaliso in Italy. In March 2024, the Company closed three five-year
sustainability linked loans with ABN AMRO Bank for a total amount of €100 million on the centres of I
Portali and Il Castello in Italy, and in April 2024 the Company extended for a period of five years the green
loan with Skandinaviska Enskilda Banken AB for a total amount of SEK 700 million (circa €61 million) on
the Hallarna shopping centre.
In the first quarter of 2024, the Company entered into new interest rate swaps and forward starting interest
rate swaps, for a total notional amount of €158 million, mostly related to hedge the three months Euribor (67%) but also to hedge the three months Stibor (33%). The unhedged part of the Company’s loan portfolio
is at 15%. The average interest rate as per 31 March 2024 was 3.1% compared to 3.2% as per 31 December 2023.
Assuming no major deterioration of the macro-economic environment, we confirm to expect the direct investment result for the year 2024 to range between €2.30 and €2.40 per share.
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